Amazon Inc (AMZN) is looking to continue its AI investments with an additional $100B investment incoming. According to Business Insider, the company’s efforts to create an internally developed AI model with sophisticated reasoning capabilities are approaching fruition. While the reasoning model is nearly complete, the development of proprietary AI agents remains in earlier stages.

This year’s AI budget for Amazon stands at $100 billion, a substantial increase from last year’s $83 billion expenditure. Last week, the company’s first-generation chip for quantum computing, Ocelot, was unveiled. The chip is a big step for Amazon in the AI and quantum race, while also giving its AWS platform new chip technology.

Amazon Web Services generated $25 billion in net sales in Q1 of last year. Since then, it has only continued to grow. Moreover, it dominates the market, owning 31% of the total share as of last year. Although Amazon AI won’t be the first to market, it has shown the potential to excel in its diversification. Moreover, it could be as successful as its cloud-computing entry in due time.

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Entering 2025, analysts were extremely bullish on Amazon (AMZN), and early on, the stock hasn’t been promising. The recent allocations by the company into AI have sent mixed signals to stock investors. While this latest chip is another driver for the company’s efforts, most experts are split on if AMZN stock will surge soon. On Tuesday, the stock closed at $203, and is up 3%. In the last month, shares are down 11%.

Amazon (AMZN) may have already developed into a top 5 AI stock, according to Bourgeon Captial. Its efforts to diversify have paid off big as the e-commerce juggernaut has flourished over the last year. With 338 total hedge fund holders of the stock, Bourgeon Capital has a $15 million equity stake in the company. Moreover, its belief in the AI stock is rooted in its $158 billion revenue in Q3, up 11% year over year. Additionally, its earnings per share exceeded forecasts by 25%, reaching $1.86.